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2013-14 Auckland North Shore and Rodney Rental Price movement

21-Jul-2014

Every now and then Chase Property Management analyse rental movements in the value of Rodney, North Shore and Auckland’s rental properties. Our Property Managers find rental price movements can be useful for considering how to adjust rents at review periods. These figures are within a narrow range, and we tailor our input data to be in line with the rental property type we are specifically interested in, this is only a part of a bigger number of considerations. (please continue reading below).

Year

Area

Type

Bedrooms

2013

2014

% Change

(Mean rent)

Eden Terrace

Apartment

2

$439

$468

6.8

Ellerslie

House

3

$550

$572

4.0

Epsom

House

3

$689

$678

-1.7

Grey Lynn/Arch Hill

House

3

$691

$701

1.4

Harbourside

Apartment

2

$613

$633

3.2

Herne Bay/St Marys

House

3

$855

$885

3.4

Hillsborough

House

4

$573

$534

-6.8

Kingsland

House

4

$716

$819

14.4

Kohimarama

House

4

$883

$841

-4.7

Mission Bay/Orakei

House

3

$658

$618

-6.0

Mt Albert/Owairaka

House

3

$520

$558

7.3

Mt Eden

House

3

$613

$629

2.6

Newmarket

Apartment

2

$458

$467

1.9

Parnell

Apartment

2

$584

$545

-6.6

Parnell

House

3

$813

$806

-0.8

Ponsonby/Freemans Bay

House

2

$628

$623

-0.8

Ponsonby/Freemans Bay

House

3

$789

$760

-3.8

Ponsonby/Freemans Bay

House

4

$884

$947

7.1

Pt Chevalier

House

3

$615

$602

-2.2

Remuera

House

3

$603

$752

24.7

Remuera South/Meadowbank South

House

3

$582

$608

4.4

Royal Oak/One Tree Hill

House

3

$575

$561

-2.4

St Helliers/Glendowie

House

3

$638

$671

5.1

St Johns

House

3

$542

$531

-2.1

St Lukes/Sandringham

House

3

$537

$564

5.0

North Shore

Albany

House

3

$487

$515

5.7

Albany

House

4

$629

$610

-3.0

Beachhaven/Birkdale

House

3

$444

$484

9.0

Beachhaven/Birkdale

House

4

$493

$588

19.2

Browns Bay

House

3

$521

$540

3.6

Chatswood/Birkenhead/Northcote Point

House

3

$509

$551

8.1

Devonport

House

3

$660

$641

-2.7

East Coast Bays

House

3

$596

$551

-7.7

Glendhu/Glenfield

House

3

$453

$461

1.7

Greenhithe/Unsworth Heights

House

3

$514

$535

4.1

Hillcrest/Northcote

House

3

$489

$520

6.4

North Harbour/Pine Hill

House

3

$518

$571

10.3

North Harbour/Pine Hill

House

4

$669

$639

-4.5

Rothesay/Murrays/Mairangi Bays

House

3

$576

$561

-2.5

Rothesay/Murrays/Mairangi Bays

House

4

$647

$692

7.0

Sunnynook/Westlake

House

3

$521

$531

2.0

Sunnynook/Westlake

House

4

$630

$600

-4.8

Takapuna

House

3

$578

$561

-3.0

Takapuna

House

4

$874

$940

7.5

Torbay

House

2

$393

$401

2.3

Torbay

House

3

$517

$515

-0.2

Wairau Park/Glenfield North

House

3

$460

$462

0.4

Rodney Area

Gulf Harbour

House

3

$426

$473

11.0

Gulf Harbour

House

4

$515

$513

-0.2

Orewa/Whangaparaoa

House

2

$378

$391

3.5

Orewa/Whangaparaoa

House

3

$448

$463

3.3

Orewa/Whangaparaoa

House

4

$591

$559

-5.4

Rewiti/Kumeu/Riverhead

House

3

$500

$484

-3.3

Wellsford/Warkworth/Helensville

House

3

$375

$398

6.0

These figures are taken from the Ministry of Business Innovation and Employment (MBIE) geometric mean rents, and don't reflect low or high end properties within each demographic, these are simply an observation of the middle value of the most rented property types in Rodney, North Shore and Auckland.

The rental movements conducted here use information from MBIE who are responsible for bond services, this information is taken from bonds lodged within a quarter period, and is the mean rental value of bonds (mean value being the mathematical middle mark), we observe that rents fluctuate, both up and down in between quarters, so we never rely on this absolutely, but we do find it interesting to watch.

If you have a Rental property type that is not reflected here, we are happy to conduct an rental movement for your property, provided there is sufficient bonds lodged to make it worth your interest and while.

Some areas show fluctuations up or down, and neither reflects a long term trend, it is only a reflection of bonds lodged at two different points in time. We often ponder why rental prices move both up and down, and I would suggest in part that the time of marketing a property for rent plays a role, factors like competition; expectations; vacancy reduction strategies; and many others could be factors.

Property Management Info

When a landlord seeks a rental appraisal for their property the intention is typically to set the rent at a price that generates both the best tenants and rental returns for the next year. Most often appraisals are conducted prior to renting or re-renting, and if that's the position you are in we encourage you to be diligent and consider possible legislative changes.

With the Residential Tenancies Act Amendment Bill no 2 now passed second reading, it is worthy of all landlords to take note of the implications and be proactive / consider the future. If the proposed changes come into effect and the rental property is not code compliant/ not legally permissible / contaminated above MOH guidelines with Meth related residues landlords may risk:
Part or full repayment of rent + a fine (up to $4000) for acting unlawfully + an order to fix (upto $50,000) & the landlord may not have any recourse for damages done to the property (i.e. tenant has moving out party and causes damage, landlord cannot make any claim).

As a landlord you are wise to start preparing that if these changes come into effect your property is lawfully rentable. Protect yourself for the future, and be confident that your rental property is lawful and you are acting lawfully by:

Get your property professionally meth tested prior to renting to ensure it is legally habitable (and do it in between every tenancy to ensure it stays meth free or the guilty party is held accountable). The cost for meth testing varies, as a range you are looking at $179-489+ GST and further room by room test may be needed. We stress to landlords, that we strongly encourage testing especially when there is faith that the house has never been occupied by users. BEWARE: ensure you're insured and be prepared for the worst. Keep in mind you can't knowing rent a contaminated house.

If there's any risk that your property is not code compliant start planning to take the steps required to get it up to scratch or at the least take the necessary steps so your not at risk of losses. Where this comes into play in the Auckland market will mostly (from our experience) be with regards to granny flats and secondly unconsented alterations like wall alterations or enclosed decks. Most of you will have some idea of where your property stands, but if not then order a LIM report (click here for Auckland Council LIM info), and or evaluate your property as it stands against the consented plans. If you don't have the plans, order a property file (from Auckland Council) to establish exactly what's on file. Where required there are options to move on with a certificate of acceptance or a safe and sanitary, but my experience has been that Council is taking a much harder line on these now as opposed to a few years ago.

When our property managers conduct a rental appraisal for you we are relying on the your assertion that the property is lawful and livable, and in the future more stress will be put on this.

The current proposed amendments will make clear some further landlord legal responsibilities, but it will bring some much needed positive changes for making tenants accountable for their damages. Parties have till early August 2017 to make submissions, so if you're interested or want to know more you can click here.

If you are seeking a well considered rental appraisal from experienced property managers in Auckland, please feel welcome to get in touch with the team at Chase Property Management.

Good news for tenants looking for property in the busy Auckland rental market. Trademe has not launched an online application system that works in conjunction with Viewing Tracker called Tenancy Tracker. Read More »